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Rate hikes for gas, electricity would be hardship, customers testify

03:00 PM EDT on Wednesday, July 9, 2008

By Paul Edward Parker

Journal Staff Writer

Ada Morales, of Providence, wipes away tears as she shows notices that utilities are going to be shut off in the home she shares with her elderly parents and young children.


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The Providence Journal / Andrew Dickerman

WARWICK — About 20 people — some whose utilities have been shut off — yesterday implored the Public Utilities Commission not to approve rate increases that National Grid has requested for natural gas and electricity.

Speaker after speaker at a public hearing said the rate increases — 21.7 percent for electricity and 10 percent for gas — will force more people to lose electricity, which they need to stay cool in the summer, and gas, which they need to stay warm in the winter.

“None of us today in 2008 can live without electricity. We all need it,” Elizabeth Dees testified. “It is unaffordable for a large percentage of the population of Rhode Island.”

“Our income is not that much, and the bill is so high,” said Elaine Keller. “Everything’s expensive, but they’re paying me the same thing.”

She said her gas had been shut off because she was behind on her bills, and National Grid wanted to put her on a payment plan to catch up. The utility asked her for $400 a month over three months. But, she said, her monthly income is only $700, and she has five children.

In testimony to the commission after the public hearing ended, a National Grid representative said he sympathized with people whose utilities had been shut off.

“We’re trying as best as we can to not ask any more than we feel is essential,” said Gary L. Beland, a manager in the gas pricing department. But, he said, the utility’s own fuel costs are also rising. “Our gas bill, if you look at the part that is not hedged, has gone up over 70 percent in the last three months.”

National Grid is Rhode Island’s dominant utility company, providing electricity to 477,000 customers in 38 communities and natural gas to about 245,000 customers in 33 communities.

Regulators have little discretion when it comes to rate-increase requests that are based on rising fuel prices. State and federal laws allow a utility company to recover from customers what it pays for electricity or natural gas, as long as the company makes “prudent” buying decisions. The PUC could cut the proposed rate increase, or delay it. But eventually, customers will have to pick up the increased costs.

“I’m not going to ask you to deny a rate increase; I’m going to ask you to delay it for one year,” said Gael Taddeo, of the George Wiley Center, a Pawtucket agency that lobbies on behalf of low-income families. “We are heading for a very, very difficult winter coming up. It’s a grim scenario. We could be looking at a mass exodus out of New England.”

But Beland said that, with the prices National Grid pays for gas continuing to rise, a delay would not be good. “It could get a whole lot worse, and that’s why I think we need to do something now.”

That was echoed by Bruce R. Oliver, a consultant hired by the state’s Division of Public Utilities and Carriers.

“It’s hard to defer increases for real costs,” Oliver testified. “Not having an increase at this time, I think, would exacerbate problems.”

Commissioner Robert B. Holbrook may have tipped what the commission is thinking on the question of a delay. “You just don’t want to do it to be politically popular for the day,” he said.

The panel is expected to decide on the rate increase tomorrow or next Thursday.

In other public testimony, Julie Silvia said the estimated $366 more it would cost for heating this winter is about the same as a month’s heating bill now. The increase, if approved, would effectively lengthen winter by a month, from an economic standpoint.

“You need to love the people that are really going to be in dire straits this winter,” said Sandra Kelly. “This is a mega-multibillion-dollar corporation. They’ll still be making a profit.”

Patrick Crowley scoffed at the requested 21.7-percent increase in electricity rates, likening the figure to the interest rate charged on some credit cards. “We are not a credit card for a corporation,” he said. “I understand that times are tough, but who are they tougher for?”

Nicole Cianci, a case manager at Nickerson Community Center, a social service agency in Providence, said the rate increases would be an added blow to families already struggling with poverty.

“People are really scared. I have clients who have 2-year-old children and nothing to feed them,” she said. “When somebody’s down, you’re kicking them. Every day is a battle for these people.”

pparker@projo.com

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